What is the Scenario of Asia Complex
Fertilizer Market?
Asian
countries are behind US and European countries in terms of achieving
agricultural crop yield. The focus on improving crop yields has driven the
demand for complex fertilizers in the Asian subcontinent over the past decade.
Asia complex fertilizer market registered moderate growth during 2012-2017,
growing at a CAGR of ~%, to register revenues worth USD ~ billion in 2017 as
compared to USD ~ billion in 2012. Moderate growth was due to decline in consumption
of complex fertilizers in certain key territories and slump in price of complex
fertilizers, driven by decline in cost of raw materials in international
markets. Overall, complex fertilizer production in Asia grew at a CAGR of ~%
during 2012-2017, whereas consumption of complex fertilizers grew at a CAGR of
~% during the same period.
Thailand
was the largest consumer and producer of complex fertilizers in Asia and
accounted for about ~% of the market in 2017.
India
ranked second and comprised for ~% of the market share in 2017. Vietnam,
Indonesia and Thailand were other major countries utilizing complex fertilizers
in Asia and accounted for ~%, ~% and ~% market share respectively in 2017. All
other Asian countries together comprised for remaining ~% of the market.
NPK
16-16-8 was the most widely used complex fertilizer in Asia and accounted for
~% market share in overall complex fertilizer market in 2017. NPK 20-20-15 was
the next popularly used fertilizer grade and comprised for ~% market share in
2017. NPK 15-15-15 and NPK 20-20-0 were other popularly used complex
fertilizers which comprised for ~% and ~% market share respectively in 2017.
All other grades/formulas of complex fertilizers together comprised for about
~% of the market share in 2017.
How has Thailand Complex Fertilizer
Market Performed?
The
fertilizer consumption in Thailand has remained at low levels as compared to
other Asian countries such as China, India, Vietnam and Indonesia. However,
inclining population and food demand has resulted in increase in consumption of
complex fertilizers in the country. Despite rise in demand, Thailand has not
been able to achieve sufficient production levels of complex fertilizers. Thus,
imports play a crucial role in the Thailand
complex fertilizer industry. Production capability is very limited with
most of the straight fertilizers being imported in the country and used for
bulk blending. Urea accounted for about 50% of overall fertilizers consumption
in the country.
Decline
in land area suitable for agriculture and deterioration of soil quality in
cultivated land have resulted in a steady increase in the use of chemical
fertilizers in the recent past. Raw materials for manufacturing complex
fertilizers are almost entirely imported by the country due to lack of
necessary raw materials domestically. In fact, a substantial amount of complex
fertilizers sold in the country are imported in finished form. The domestic
manufacturing capability for complex fertilizers is very limited.
Complex
fertilizers worth USD ~ million were sold in the country in 2017 as compared to
USD ~ million in 2012, representing growth at a CAGR of ~ during the period
2012-2017. The market witnessed a slowdown in revenue growth during the last
three years due to erratic monsoons and decline in price of complex fertilizers
in the country.
Thailand
imported about ~ thousand MT of NPK fertilizers during 2016, majorly from
Russia, Norway and Finland. Imports declined in 2016 by as much as ~% as
compared to 2015. Decline in domestic demand due to erratic monsoon and low
consumer enthusiasm resulted in a decline in imports of the same in 2016.
Overall, imports declined from ~ thousand MT in 2013 to ~ thousand MT in 2016.
Russia,
Norway and Finland were the largest exporters of NPK fertilizers to Thailand as
of 2016, contributing about ~%, ~% and ~% of the overall NPK imports of the
country (in terms of volume). China, Netherland and Germany were other major
exporters and accounted for ~%, ~% and ~% of the total NPK imports in 2016.
Which Segments Have Outperformed?
NPK
15-15-15 was the most widely used complex fertilizer in Thailand since it is
priced comparatively cheaper and contains a balanced primary nutrient content.
The usage of this particular NPK fertilizer has grown at the fastest pace
during the last 5 years. NPK 15-15-15 comprised for about ~% market share in
the overall complex fertilizer market in Thailand in 2015.
NPK
16-16-8, NPK 16-8-8 and NPK 10-10-16 were other popularly used fertilizer grade
which comprised for ~%, ~% and ~% market share respectively in 2017. All other
grades/formulas of complex fertilizers together comprised for about ~% of the
market share in 2017.
Consumption
of three-nutrient NPKs was much higher than that for two-nutrient NPKs in
Thailand.
Complex
fertilizers in Thailand were majorly utilized for cultivation of cereals and
comprised for about ~% of the market share in 2017, in terms of consumption
volume. Fruits and vegetables, Oilseeds and all others accounted for ~%, ~% and
~% market share, respectively.
Thailand
largely produced, imported and utilized blended complex fertilizers due to low
investment required for companies for set up a blended manufacturing facility.
Consumption of blended fertilizers stood at ~ Million MT in 2017, comprising
for ~% market share of overall complex fertilizer consumption in the country.
On the other hand, consumption of granulated or fused complex fertilizers stood
at ~ Million MT in 2017 which accounted for ~%market share of the overall
complex fertilizer market in Thailand.
Thailand's
chemical fertilizer market is highly competitive with top 5 players comprising
over ~% of the market share, in terms of revenue in 2017. The market is largely
import based with very limited domestic manufacturing capabilities. Raw materials
are almost entirely imported in the country. As a result, some of the leading
European countries have resorted to importing and distributing complex
fertilizer products in the country rather than setting up production units.
Traders largely imported finished fertilizers and subsequently marketed
them.
Thai
Central Chemical Public Company was the largest players operating in this
space. It imported majority of the raw materials and produced both granulated
and blended complex fertilizers. As of 2017, the company had ~% market share in
the overall complex fertilizer market, in terms of revenue. Yara International,
ICL Fertilizers and Chia Tai were other leading players in this sector. All
these companies do not have any manufacturing facility in Indonesia and only
imported and supplied complex fertilizers to the domestic market. Yara, ICL and
Chia Tai accounted for ~%, ~% and ~% market share in 2017, respectively.
Terragro Fertilizer Company had manufacturing unit for complex fertilizers in
Thailand and comprised for ~% market share in 2017.
What are the Growth Prospects of
Thailand Complex Fertilizer Market?
Despite
dependence on external factors such as machinery, raw materials and energy,
Thailand's complex fertilizer industry will remain just as indispensable to the
future of economic development as it has been during the past decades.
Thailand, after all, is an agricultural country. Besides, its fertilizer use
per hectare of land is still well below other Asian countries.
Thailand
will continue to be reliant on imports in order to meet the domestic demand of
complex fertilizers. However, increasing government’s focus to reduce
dependence on imports could result in setting up of manufacturing plants in the
near future.
Most
manufacturers produced low quality blended complex fertilizers in Thailand
since almost all raw materials are imported. However, steady rise in production
of complex fertilizers is expected in the mid-long term. Complex fertilizers
market is anticipated to be worth USD ~ million by 2022 growing at a CAGR of ~%
during the period 2017-2022.
Average
selling prices of NPKs are most likely to improve 2018 onwards owing to
recovery in agricultural commodities’ prices and rise in prices of raw
materials.
Ken
Research estimates the consumption of complex fertilizer to grow at a CAGR of
~% in the next five years, rising from ~ million MT in 2018 to ~ million MT in
2022. Furthermore, production of complex fertilizers is expected to grow at
healthy CAGR of ~% during 2017-2022, inclining from ~ million MT in 2018 to ~
million MT by 2022.
NPK
15-15-15 was the most widely used complex fertilizer in Thailand, recording
fastest growth during the last 5 years. Going forward, utilization of NPK
15-15-15 is most likely to remain strong owing to balanced nutrient composition
and comparatively cheaper prices.
For more information on the research
report, refer to below link:
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